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Bitcoin hit a high of just under $20,000 in mid-December after increasing about 20x since the beginning of 2017. It then went on a fairly steady decline to a low around $6,000 on February 6 (note that there is no single site with an official Bitcoin or other cryptocurrencies prices).

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

A visual representation of the digital Cryptocurrency, Bitcoin. Photo by Chesnot/Getty Images

The February 6 low also mirrored when the Chairman of the SEC, Jay Clayton, and J. Christopher Giancarlo, Chairman of the CFTC, or Commodities Futures Trading Commission, provided testimony to the Senate Banking Committee. There was a good amount of angst going into their testimony that would negatively impact Bitcoin and other cryptocurrencies. However, from their remarks there seemed to be tacit support for cryptocurrencies as long as they adhere to existing regulatory frameworks.

However, in just the past day or two it has broken above the resistance line. It will need to stay above it, and for now it is. As of late Friday night Bitcoin is trading above $10,500.

It has also moved above its 100 day moving average (the red line on the chart), which could provide a bit more support as long as Bitcoin can stay above it for at least a few days. Keep in mind that Bitcoin’s trading history has been short compared to most equities so these technical analyses do have shortcomings.